One of our Northern California winery clients was established in the early 1990’s as a true family operation. Both parents were involved in managing the winery and vineyard, along with their adult son. As time passed, the parents’ role in the business gradually lessened to the point where their only involvement was as shareholders and creditors. Over the past few years, Moss Adams worked with the parents and the son to develop a plan for smooth management and ownership transition, which resulted in significant estate-tax savings for the parents, and complete management and financial independence for the son.
The ownership transition was accomplished through a combination of gifts, transfers to special-purpose entities, and stock sales/purchases. This was all done in a manner that avoided significant income and gift taxes for the parents, and reassessment of the vineyard real estate upon its transfer to the son.
Our Yakima office has been working on long-term strategic plans for several warehouse and packing operations. One of these involves a complete review, including individual meetings with the owner and employees to determine a revised management and operational structure, combined with an ownership-transition plan that will be implemented as part of the reorganization. The organization is pleased with the outcome of the meetings, and is expected to implement many of the recommended changes over the next 12 months.
We are in the process of working with a long-time client to restructure their operations, which include substantial orchard, warehouse and packing, and sales operations. In addition, the clients, individually and through their various companies, own substantial non-operating assets. Among other things, the restructuring is intended to accomplish the following objectives:
Val Perry
509-248-7750
Rich Thornton
503-242-1447
Wine Industry Roundtable
August 19, 2008
Napa, CA
ExpoEast
October 15-18, 2008
Boston, MA
InterBev
October 20-22, 2008
Las Vegas, NV
Produce Marketing Association
October 24-27, 2008
Orlando, FL